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Indian rupee opens lower on hawkish Fed outlook

Indian rupee opens lower on hawkish Fed outlook

Reserve Bank of India tipped to step in near to 80 levels, traders said. RBI defended rupee when it reached record low of 80.0650 last month.

Indian rupee opens lower on hawkish Fed outlook (Photo: Reuters) Indian rupee opens lower on hawkish Fed outlook (Photo: Reuters)

The Indian rupee opened lower against the U.S. currency on Monday, as decline in Asian equities and bets that the Federal Reserve will continue to raise policy rates, boosted the dollar.

The rupee was trading at 79.81 per U.S. dollar by 0333 GMT, compared with 79.7750 in the previous session.

The dollar index rose to 108.25 on Monday, the highest in five weeks. 

10-year Treasury yield climbed above 3% for first time since July 21.

Richmond Fed President Thomas Barkin said on Friday that the "urge" among central bankers was towards faster, front-loaded rate increases.

Odds of 50-basis points or 75-basis points Fed rate hike at September meeting almost even.

Focus this week on comments by Fed Chair Jerome Powell on Friday at the annual symposium in Jackson Hole, Wyoming.

Reserve Bank of India tipped to step in near to 80 levels, traders said. RBI defended rupee when it reached record low of 80.0650 last month.


 

Published on: Aug 22, 2022, 10:22 AM IST
Posted by: Tarab Zaidi, Aug 22, 2022, 10:19 AM IST
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